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INVESTOR PRESENTATION
First Quarter 2014
Note to Investors
• Certain non-GAAP financial information regarding operating results
may be discussed during this presentation. Reconciliations of the
differences between GAAP and non-GAAP measures are available on
the Investor page at www.teradata.com/investor.
• Remarks and responses associated with this presentation include
forward-looking statements that are based on current expectations
and assumptions. These forward-looking statements are subject to
a number of risks and uncertainties that could affect our future
results and could cause actual results to differ materially from
those expressed in such forward-looking statements.
• These risks and uncertainties are detailed in Teradata’s Registration
Statement on Form 10 and in our SEC reports, including, but not
limited to, our periodic and current reports on Forms 10-K, 10-Q,
and 8K, as well as the company’s annual report to shareholders.

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Teradata Confidential
Information Technology Landscape
Operational Systems
Help Run the Business

Analytic Systems Drive
Business Decisions

Operational/
Transactional Systems

Business Intelligence/
Analytical Applications

Oracle, SAP

Oracle, SAP, SAS, Business Objects,
Cognos, Microsoft, Teradata

Enterprise Application
Integration
IBM, BEA, TIBCO,
Oracle, SAP

Data Warehouse Databases

Transactional Databases

Oracle, Microsoft,
IBM, Netezza

Oracle, IBM, Microsoft, PostgreSQL

Teradata

Data Acquisition
& Integration
Informatica,
IBM, Oracle

Servers, Storage...

Servers, Storage...
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Teradata Confidential
The Problem …
OPERATIONAL
SYSTEMS

The Solution

DECISION
MAKERS

OPERATIONAL
SYSTEMS

DECISION
MAKERS

Integrated
Data
Warehouse
(IDW)

Proliferation of data marts has
resulted in fragmented data, higher
costs, poor decisions

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2/7/2014

Integrated data provides data
consistency, lower costs, better decisions

Teradata Confidential
Unified Data Architecture
• Any User, Any Data, Any Analysis

Engineers

Data Scientists

Quants

Business Analysts

Java, C/C++, Pig, Python, R, SAS, SQL, Excel, BI, Visualization, etc.

Aster MapReduce Portfolio

Teradata Analytics Portfolio

Discovery Platform

Integrated Data
Warehouse

SQL-H

Capture, Store, Refine
Audio/
Video

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2/7/2014

Images

Text

Web &
Social

Machine
Logs

Teradata Confidential

CRM

SCM

ERP
Teradata Analytical Ecosystem
2000 series
1000 series

6000 series
500 series

6000 series
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Teradata Confidential

2000 series
Teradata Workload-Specific Platforms

Data Mart
Appliance

Extreme
Data
Appliance

Data
Warehouse
Appliance

Active
Enterprise
Data
Warehouse

600 Series

1000 Series

2000 Series

6000 Series

Up to 8TB

Up to 186PB

Up to 1.6PB

Analytical
Archive,
Deep Dive
Analytics

Strategic
Intelligence,
Decision
Support
System, Fast
Scan

Scale

Workloads

7

Test /
Development
or Smaller
Data Marts

2/7/2014

Appliance
for Hadoop

Aster Big
Analytics
Appliance

Up to 61PB

Up to 10PB

Up to 5PB

Strategic &
Operational
Intelligence,
Real Time
Update,
Active
workloads

Appliance for
Storing,
Capturing and
Refining Data.
Hortonworks
HDP 1.1

Discovery
Platform for Big
Data Analytics
with embedded
SQL MapReduce
for new data
types & sources

Teradata Confidential
Broadest, Most Flexible Hadoop Offerings in Market

Aster Big Analytics
Appliance
Overview

Value
Proposition

Value Add

Segment

Appliance for Hadoop

Commodity Offering
with Dell

Software Only

Premier

Premier

Commodity

Commodity

Big data analytics in an
integrated package

Enterprise-ready Hadoop Pre-designed, costwith single vendor
effective commodity
support
hardware with
Teradata software
support

Flexible hardware
options with
Teradata software
support

 Single best analytics
& discovery platform
 SQL-MapReduce &
70+ analytics
 Integrated
hardware/software
 Software to simplify
operation of Hadoop

 Integrated
hardware/software
that is engineered,
staged, & delivered
complete.
 Data staging &
refining
 Software to simplify
operation of Hadoop

 Teradata software
install & support

Business Value Based
IT
“Buy it”

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2/7/2014

 Hardware staged,
delivered by Dell
 Teradata software
install & support

Value Based IT

Cost-Based IT

Engineering IT

“Buy it”

“Buy it, Build it”

“Build it”

100% Open Source, Teradata Confidential
Community-Driven Enterprise Apache Hadoop
Teradata’s Data Warehouse Evolution/Vision
ACTIVATING
MAKE it happen!

Stage 4
Stage 3
Stage 2
Stage 1

Workload Sophistication

Stage 5
OPERATIONALIZING
WHAT IS
happening now?

PREDICTING
WHAT WILL
happen?
ANALYZING
WHY
did it happen?
REPORTING
WHAT
happened?

Event-based
triggering
takes hold

Continuous update
and time-sensitive
queries become
important
Analytical
modeling
grows

Increase in
ad hoc analysis
Primarily batch
and some ad hoc
reports

Scalability
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Teradata Confidential
Teradata’s Industry-Leading Technology
Scalability Across Multiple Dimensions
Data Volume
(Raw, User Data)

Technology Demands
• Extreme scalability
• Extreme performance
• Extreme availability
• Extreme data load and
access

Mixed
Workload

Query
Concurrency

Data
Freshness

Query
Complexity

Query
Freedom

Schema
Sophistication
Query Data Volume

Mission critical 7x24

Teradata can scale
simultaneously across
multiple dimensions.
Driven by business!
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Teradata Confidential

Competition scales one
dimension at the expense
of others.
Limited by technology!
Teradata – The Data Warehouse Leader
Gartner Magic Quadrant for Data
Warehouse DBMS
• Teradata demonstrates “a
persistent strategy to address
the growing role of the data
warehouse as an information
management platform…”
• “Teradata's strong professional
services provide implementation
field experience…”
• “Aster Data added new capabilities …
such as MapReduce, unstructured
data and graph analysis…”

The Magic Quadrant is copyrighted January 2013 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific
time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or
service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a
research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of
merchantability or fitness for a particular purpose.

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Teradata Confidential
The Forrester Wave TM
Enterprise Data Warehouse Q4 2013
•

Teradata was cited as
leader in the 2013
Forrester EDW Wave.

•

Teradata is TOP
RANKED among all
reviewed vendors for
"strategy" and for
“current offering”
categories.

•

Teradata received top
scores in over 75% of
the categories.

The Forrester Wave ™ is copyrighted by Forrester Research,
Inc. Forrester and Forrester Wave ™ are trademarks of
Forrester Research, Inc. The Forrester Wave ™ is a graphical
representation of Forrester’s call on a market and is plotted
using a detailed spreadsheet with exposed scores, weightings,
and comments. Forrester does not endorse any vendor,
product, or service depicted in the Forrester Wave. Information
is based on best available resources. Opinions reflect judgment
at the time and are subject to change.

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Teradata Confidential
Teradata Applications: An Integrated
Marketing Management Solution
Strategic Insight and
Marketing Processes
Multi-Channel
Campaign Management

Source Data

Product/
SKU

Seamless Customer
Engagement

Teradata
Customer
Data
Warehouse

Channels
Web

Campaign Campaign
Design
Automation

Leads

Call
Center

Marketing Operations
Inventory

Sales/
POS/
Franchise

Customer-centric
Data Management
Assets

Workflow
& Rules

Plan
Spend

Marketing
Assets

Aster Data Marketing Analytics

Teradata
Aster

Mining
Modeling

Reporting
Trending

Profiling
Segmenting

Big Data
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Partner

ATM/
Kiosk

Supplier

Promotional/
Loyalty Data

Customers

Teradata Confidential
Copyright © 2011 by Teradata Corporation

Email

Sales

Social
Media
Mobile

Consumer
Teradata positioned as Leader in Gartner
2014 MRM Magic Quadrant

Magic Quadrant for MRM MQ, Kim
Collins, 2/4/14

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner
document is available upon request from Teradata. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not
advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research
organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including
any warranties of merchantability or fitness for a particular purpose
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Teradata Confidential
Revenue by Industry
2007

2013*
Energy & Util.
1%

2008

2009

2010

2011

2012

2013

Financial
Services

Manuf.
13%

Retail
14%

28%

30%

31%

28%

28%

23%

24%

24%

21%

19%

19%

16%

17%

16%

16%

16%

14%

9%

11%

10%

13%

12%

12%

13%

Healthcare

5%

4%

8%

6%

7%

7%

8%

Travel &
Transportation

6%

6%

6%

6%

5%

6%

6%

7%

5%

7%

7%

6%

6%

6%

Other

Comms.
19%

28%

Government

Healthcare
8%

28%

Manufacturing

Gov't.
6%

29%

Communications

Financial
31%

24%

Retail

Travel/Trans.
5%

Other
2%

2%

1%

<1%

<1%

2%

2%

3%

95%

* Approximate percentages of product and consulting services revenue by industry.

Industry Penetration+
Global Fortune 500

71%

57%

52%

D&B 3000

50%

46%

39%
26%
15%

+ Percentage of companies
within each industry
vertical that have begun
investing in Teradata.

24%

23%
16%

16%

7%

Telecom

15

Trav/Trans

2/7/2014

Media/Ent.

Healthcare

Retail

Fin/Ins

Teradata Confidential

Manuf

8%

4%

Energy &
Utilities
Operating Performance
Revenue

2,665

$ in millions

Operating Income

2,692

$ in millions

580
2,362

532

456
415
1,936

1,702

1,762

1,709

284

302

320

333

338

1,547
1,467

199

1,349
1,217 1,203

124
96

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
(1)%

16

12%

9%

2/7/2014

5%

10%

4%

(3)%

13%

22%

13%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1%

Teradata Confidential

Operating Income
Revenue Mix & Operating Segments
Revenue Mix

% of
Total

2013

Products (SW/HW)

$1,230M

46%

Consulting Services

818M

30%

Maintenance Services

644M

24%

Operating Segments

Total Revenue

Americas

61% of total revenue
Gross margin 58%

$2,692M
International

Approximately 40% of Teradata’s
revenue is from recurring
revenue sources.

17

2/7/2014

Teradata Confidential

39% of total revenue
Gross margin 50%
Strong Balance Sheet & Cash Flow
Balance Sheet

Dec. 30
2007

Dec. 30
2008

Dec. 30
2009

Dec. 31
2010

Dec. 31
2011

Dec. 31
2012

Dec. 31
2013

Cash & Short-Term
Investments

270

729

661

883

772

729

695

Working Capital

301

728

609

837

717

728

787

1,294

3,066

1,569

1,883

2,616

3,066

3,096

0

289

0

0

300

289

278

Total Deferred Revenue

246

405

256

263

363

405

415

Total Shareholders’ Equity

631

1,779

910

1,189

1,494

1,779

1,857

($ in millions)

2007

2008

2009

2010

2011

2012

2013

Net Income

200

250

254

353

353

419

377

Cash from Operating Income

387

440

455

513

513

575

510

Free Cash Flow

292

369

367

403

403

427

372

($ in millions)

Total Assets
Debt

Cash Flow

18

2/7/2014

Teradata Confidential

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Gartner For Product Management And Marketing
 

Teradata Investor Presentation

  • 2. Note to Investors • Certain non-GAAP financial information regarding operating results may be discussed during this presentation. Reconciliations of the differences between GAAP and non-GAAP measures are available on the Investor page at www.teradata.com/investor. • Remarks and responses associated with this presentation include forward-looking statements that are based on current expectations and assumptions. These forward-looking statements are subject to a number of risks and uncertainties that could affect our future results and could cause actual results to differ materially from those expressed in such forward-looking statements. • These risks and uncertainties are detailed in Teradata’s Registration Statement on Form 10 and in our SEC reports, including, but not limited to, our periodic and current reports on Forms 10-K, 10-Q, and 8K, as well as the company’s annual report to shareholders. 2 2/7/2014 Teradata Confidential
  • 3. Information Technology Landscape Operational Systems Help Run the Business Analytic Systems Drive Business Decisions Operational/ Transactional Systems Business Intelligence/ Analytical Applications Oracle, SAP Oracle, SAP, SAS, Business Objects, Cognos, Microsoft, Teradata Enterprise Application Integration IBM, BEA, TIBCO, Oracle, SAP Data Warehouse Databases Transactional Databases Oracle, Microsoft, IBM, Netezza Oracle, IBM, Microsoft, PostgreSQL Teradata Data Acquisition & Integration Informatica, IBM, Oracle Servers, Storage... Servers, Storage... 3 2/7/2014 Teradata Confidential
  • 4. The Problem … OPERATIONAL SYSTEMS The Solution DECISION MAKERS OPERATIONAL SYSTEMS DECISION MAKERS Integrated Data Warehouse (IDW) Proliferation of data marts has resulted in fragmented data, higher costs, poor decisions 4 2/7/2014 Integrated data provides data consistency, lower costs, better decisions Teradata Confidential
  • 5. Unified Data Architecture • Any User, Any Data, Any Analysis Engineers Data Scientists Quants Business Analysts Java, C/C++, Pig, Python, R, SAS, SQL, Excel, BI, Visualization, etc. Aster MapReduce Portfolio Teradata Analytics Portfolio Discovery Platform Integrated Data Warehouse SQL-H Capture, Store, Refine Audio/ Video 5 2/7/2014 Images Text Web & Social Machine Logs Teradata Confidential CRM SCM ERP
  • 6. Teradata Analytical Ecosystem 2000 series 1000 series 6000 series 500 series 6000 series 6 2/7/2014 Teradata Confidential 2000 series
  • 7. Teradata Workload-Specific Platforms Data Mart Appliance Extreme Data Appliance Data Warehouse Appliance Active Enterprise Data Warehouse 600 Series 1000 Series 2000 Series 6000 Series Up to 8TB Up to 186PB Up to 1.6PB Analytical Archive, Deep Dive Analytics Strategic Intelligence, Decision Support System, Fast Scan Scale Workloads 7 Test / Development or Smaller Data Marts 2/7/2014 Appliance for Hadoop Aster Big Analytics Appliance Up to 61PB Up to 10PB Up to 5PB Strategic & Operational Intelligence, Real Time Update, Active workloads Appliance for Storing, Capturing and Refining Data. Hortonworks HDP 1.1 Discovery Platform for Big Data Analytics with embedded SQL MapReduce for new data types & sources Teradata Confidential
  • 8. Broadest, Most Flexible Hadoop Offerings in Market Aster Big Analytics Appliance Overview Value Proposition Value Add Segment Appliance for Hadoop Commodity Offering with Dell Software Only Premier Premier Commodity Commodity Big data analytics in an integrated package Enterprise-ready Hadoop Pre-designed, costwith single vendor effective commodity support hardware with Teradata software support Flexible hardware options with Teradata software support  Single best analytics & discovery platform  SQL-MapReduce & 70+ analytics  Integrated hardware/software  Software to simplify operation of Hadoop  Integrated hardware/software that is engineered, staged, & delivered complete.  Data staging & refining  Software to simplify operation of Hadoop  Teradata software install & support Business Value Based IT “Buy it” 8 2/7/2014  Hardware staged, delivered by Dell  Teradata software install & support Value Based IT Cost-Based IT Engineering IT “Buy it” “Buy it, Build it” “Build it” 100% Open Source, Teradata Confidential Community-Driven Enterprise Apache Hadoop
  • 9. Teradata’s Data Warehouse Evolution/Vision ACTIVATING MAKE it happen! Stage 4 Stage 3 Stage 2 Stage 1 Workload Sophistication Stage 5 OPERATIONALIZING WHAT IS happening now? PREDICTING WHAT WILL happen? ANALYZING WHY did it happen? REPORTING WHAT happened? Event-based triggering takes hold Continuous update and time-sensitive queries become important Analytical modeling grows Increase in ad hoc analysis Primarily batch and some ad hoc reports Scalability 9 2/7/2014 Teradata Confidential
  • 10. Teradata’s Industry-Leading Technology Scalability Across Multiple Dimensions Data Volume (Raw, User Data) Technology Demands • Extreme scalability • Extreme performance • Extreme availability • Extreme data load and access Mixed Workload Query Concurrency Data Freshness Query Complexity Query Freedom Schema Sophistication Query Data Volume Mission critical 7x24 Teradata can scale simultaneously across multiple dimensions. Driven by business! 10 2/7/2014 Teradata Confidential Competition scales one dimension at the expense of others. Limited by technology!
  • 11. Teradata – The Data Warehouse Leader Gartner Magic Quadrant for Data Warehouse DBMS • Teradata demonstrates “a persistent strategy to address the growing role of the data warehouse as an information management platform…” • “Teradata's strong professional services provide implementation field experience…” • “Aster Data added new capabilities … such as MapReduce, unstructured data and graph analysis…” The Magic Quadrant is copyrighted January 2013 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. 11 2/7/2014 Teradata Confidential
  • 12. The Forrester Wave TM Enterprise Data Warehouse Q4 2013 • Teradata was cited as leader in the 2013 Forrester EDW Wave. • Teradata is TOP RANKED among all reviewed vendors for "strategy" and for “current offering” categories. • Teradata received top scores in over 75% of the categories. The Forrester Wave ™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave ™ are trademarks of Forrester Research, Inc. The Forrester Wave ™ is a graphical representation of Forrester’s call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. 12 2/7/2014 Teradata Confidential
  • 13. Teradata Applications: An Integrated Marketing Management Solution Strategic Insight and Marketing Processes Multi-Channel Campaign Management Source Data Product/ SKU Seamless Customer Engagement Teradata Customer Data Warehouse Channels Web Campaign Campaign Design Automation Leads Call Center Marketing Operations Inventory Sales/ POS/ Franchise Customer-centric Data Management Assets Workflow & Rules Plan Spend Marketing Assets Aster Data Marketing Analytics Teradata Aster Mining Modeling Reporting Trending Profiling Segmenting Big Data 13 2/7/2014 Partner ATM/ Kiosk Supplier Promotional/ Loyalty Data Customers Teradata Confidential Copyright © 2011 by Teradata Corporation Email Sales Social Media Mobile Consumer
  • 14. Teradata positioned as Leader in Gartner 2014 MRM Magic Quadrant Magic Quadrant for MRM MQ, Kim Collins, 2/4/14 This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Teradata. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose 14 2/7/2014 Teradata Confidential
  • 15. Revenue by Industry 2007 2013* Energy & Util. 1% 2008 2009 2010 2011 2012 2013 Financial Services Manuf. 13% Retail 14% 28% 30% 31% 28% 28% 23% 24% 24% 21% 19% 19% 16% 17% 16% 16% 16% 14% 9% 11% 10% 13% 12% 12% 13% Healthcare 5% 4% 8% 6% 7% 7% 8% Travel & Transportation 6% 6% 6% 6% 5% 6% 6% 7% 5% 7% 7% 6% 6% 6% Other Comms. 19% 28% Government Healthcare 8% 28% Manufacturing Gov't. 6% 29% Communications Financial 31% 24% Retail Travel/Trans. 5% Other 2% 2% 1% <1% <1% 2% 2% 3% 95% * Approximate percentages of product and consulting services revenue by industry. Industry Penetration+ Global Fortune 500 71% 57% 52% D&B 3000 50% 46% 39% 26% 15% + Percentage of companies within each industry vertical that have begun investing in Teradata. 24% 23% 16% 16% 7% Telecom 15 Trav/Trans 2/7/2014 Media/Ent. Healthcare Retail Fin/Ins Teradata Confidential Manuf 8% 4% Energy & Utilities
  • 16. Operating Performance Revenue 2,665 $ in millions Operating Income 2,692 $ in millions 580 2,362 532 456 415 1,936 1,702 1,762 1,709 284 302 320 333 338 1,547 1,467 199 1,349 1,217 1,203 124 96 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (1)% 16 12% 9% 2/7/2014 5% 10% 4% (3)% 13% 22% 13% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1% Teradata Confidential Operating Income
  • 17. Revenue Mix & Operating Segments Revenue Mix % of Total 2013 Products (SW/HW) $1,230M 46% Consulting Services 818M 30% Maintenance Services 644M 24% Operating Segments Total Revenue Americas 61% of total revenue Gross margin 58% $2,692M International Approximately 40% of Teradata’s revenue is from recurring revenue sources. 17 2/7/2014 Teradata Confidential 39% of total revenue Gross margin 50%
  • 18. Strong Balance Sheet & Cash Flow Balance Sheet Dec. 30 2007 Dec. 30 2008 Dec. 30 2009 Dec. 31 2010 Dec. 31 2011 Dec. 31 2012 Dec. 31 2013 Cash & Short-Term Investments 270 729 661 883 772 729 695 Working Capital 301 728 609 837 717 728 787 1,294 3,066 1,569 1,883 2,616 3,066 3,096 0 289 0 0 300 289 278 Total Deferred Revenue 246 405 256 263 363 405 415 Total Shareholders’ Equity 631 1,779 910 1,189 1,494 1,779 1,857 ($ in millions) 2007 2008 2009 2010 2011 2012 2013 Net Income 200 250 254 353 353 419 377 Cash from Operating Income 387 440 455 513 513 575 510 Free Cash Flow 292 369 367 403 403 427 372 ($ in millions) Total Assets Debt Cash Flow 18 2/7/2014 Teradata Confidential